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Moody’s Warns Poland of Downgrade

One of the three major rating agencies, Moody’s has warned Poland that it may soon downgrade its rating.

The move would follow Standard & Poor’s recent downgrade of the country from A- to BBB+.

Moody’s warned about the government’s proposed banking tax and Swiss franc mortgage conversion, which would have a heavy impact on the industry.

The report went on to say, “If the conversion were to be enforced on unfavourable terms for banks, burdening them with substantial financial costs, that would threaten the stability of the banking sector. The tax also threatens to hurt credit growth because it reduces banks’ capital creation, which risks adversely affecting Poland’s economy and resulting in slower GDP growth.”